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Monday, 20 September 10
KANGAROO RESOURCES SIGNS PARTNERSHIP WITH ASEAMCO FOR INDONESIAN COAL ASSETS - PROACTIVE INVESTORS


International coal producer Kangaroo Resources (ASX: KRL) has completed a new three-year agreement with Australian mining consultants ASEAMCO to deliver key mining and operational support services across its portfolio of Indonesian coal projects.

Mark O’Keeffe, managing director of Kangaroo, said: “We are pleased to have secured the ongoing services of ASEAMCO, not only as they are very experienced in coal mining in Indonesia but also as they have a long history working on several of Kangaroo’s projects and also with our Indonesian partners.”

The new agreement has been negotiated as payment partly in cash and partly in Kangaroo shares at the election of ASEAMCO, both to preserve Kangaroo's cash flow as well as give ASEAMCO added incentive to deliver.

Robert de Jongh, managing director of ASEAMCO was equally supportive of the deal saying, “We believe Kangaroo and its Indonesian partners have a portfolio of significant coal assets in East Kalimantan, and ASEAMCO is confident it has the expertise to add value to these assets.”

The Kangaroo medium term strategy involves vending in valuable new coal projects, while building production in the short term from up to three existing projects.

Kangaroo is targeting up to 0.5 million tonnes production in 2010, with the medium term goal over three years stated by the company is to achieve up to 10 plus million tonnes of coal per annum, from three production hubs in East Kalimantan.
Source: Proactive Investors



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